Instant Mobile Payment Service (IMPS) – 5 Things You Should Know

We have already told you about the Instant Mobile Payment Service which is going to be rolled out to seven Indian banks – IMPS are State Bank of India, Bank of India, Union Bank of India, ICICI Bank, HDFC Bank , Axis Bank and YES Bank and 22 more banks are in the pipeline. Here are a few important things which you must know about the Instant Mobile Payment Service (IMPS) in India.

  • Customers need to register with their banks for IMPS. The banks will issue the customers a unique seven digit mobile money identifier (MMID) and mobile banking personal identification number (MPIN).
  • To send a mobile payment you have to key in the receiver’s mobile number, his/her MMID, the amount to be sent and the MPIN. Once the money is sent, you will get a SMS confirmation.
  • A customer can link multiple bank accounts to his / her mobile phone with the help of IMPS. The service ensures that only people who are registered will receive money. This avoids erroneous transfers to a large extent.
  • IMPS has certain transfer limits. Users can transfer a maximum of Rs 5,000 per transaction and upto a maximum value of Rs 25,000 per month, per customer.
  • IMPS Service Charges: IMPS is currently being offered free of charge to customers up to March 31, 2011. Customers will be required to pay only SMS charges. The switching fee for banks for routing IMPS transactions through the National Financial Switch has been reduced to Rs 0.25 per transaction (which is Rs 0.50 for ATM transactions).